What are the investment tracks?

Pacific Holdings offers multiple investment tracks, in all of which the investor receives 100% ownership of the property.

When buying a refurbished and leased property managed with our CLA method:

The purchaser receives a fixed return (monthly installments) for four years according to the following key:
A. 9% fixed annual return for four years and equal distribution (50/50) of future capital gains.
B. 8% fixed annual return for four years and a distribution of 70/30 of future capital gains, in favor of the purchaser.
C. 7% fixed annual return for four years without any distribution of future capital gains.

What happens after the property purchase is complete?

Within about 30 days after the transfer of money to escrow, the investor will be notified that the property is titled and registered in his/her name. Within about 60 days of the home recording notification, we will mail checks.
Example: If the property is registered in your name on May 1st, 2016, the first check you receive will be from July 1st, 2016, along with subsequent checks for August through the end of 2016. In January 2017, the investor will receive an additional 12 checks to cover the entire year.

What amount can I expect on my checks?

Depending on the investment track chosen, and if the investor wants a bank guarantee from Bank of America, the annual yield can vary.

If the annual yield is 8%, the amount on each check for four years will be as follows:

$700 = ($105,000 x 8% = $8,450 / 12 months = $700 per month)

If you are not interested in a guarantee from Bank of America in the aforementioned scenario, the annual yield will be 9% and the amount on each check for the next four years will be:

$787.50 = ($105,000 x 9% = $9,450 / 12 months = $787.50 per month)

The above amounts are fixed and will not change over the next 48 months, as is stipulated in the agreement.

Is the house insured? Who pays for repairs?

CLA Track - In the CLA Track, Pacific Holdings prepares all the assets and pays all expenses that apply to the house. Also, in the case of a vacant property and assets where the tenant is being replaced, the investor still receives the fixed return.

Management Fees Track - In the Management Fees Track, the investor is the one who must insure the property and pay all costs applicable to the house, including various amendments needed. In the case of a tenant vacating the property, the investor will not receive rent.

What happens after four years?

At the end of four years, the parties will resort to an assessor who will conduct an appraisal of the property, while Pacific Holdings will be entitled to receive 50% of the increase in the value of the property if the 9% CLA plan is chosen. The investor has several options to choose from at this time:

One: The investor can offer the property for sale, with 50% of the profits from the sale belonging to Pacific Holdings real estate investments. Pacific Holdings has the right to buy the property from the investor for the appraisal amount.

Two: The investor can keep the property and:

A. Create a new management contract with Pacific Holdings (the investor will agree to new contract since the initial contract terms expire after four years).
B. Get out of the Pacific Holdings deal and continue to manage the property on their own. The investor must still pay Pacific Holdings 50% of the property value’s appreciation (according to an appraiser).
It is important to note that the investor does not have to wait four years to choose one of these options, the contract explicitly states that the investor may sell the property at any time and pay Pacific 50% of the increased value at the time.
Also, note that in the case of selecting a path of 7% guaranteed return - the investor doesn’t pay Pacific Holdings any part of the capital gains.

What if Pacific Holdings files for bankruptcy?

The property is registered to the investor, and therefore bankruptcy would not affect the investment.

What guarantee do I have that I will receive the checks?

All 48 checks are deposited with a trustee from day one.

Who is the previous owner?

That depends. Some properties are bought from banks and some from private sellers. All properties bought by Pacific Holdings are renovated and ready for occupancy.

Will the property be registered under my name?

Yes. Assets are recorded in the county where the property is located, under the name of the new investor. The investor is 100% owner of the property, receiving the ownership document and insurance policy. The policy is intended to provide the investor with peace of mind because the insurance company only takes care of registration of ownership that is 100% accurate.

How long does registration take?

It depends. Once funds are deposited in an escrow account, it can take up to 10 days if there is no mortgage taken, and up to 30 days to record with a mortgage.

What are the closing costs?

1. Appraisers report
2. Legal fees/escrow (Atlanta - Adv., California - escrow)
3. Registration expenses
4. Insurance policy ownership
5. Other small expenses (postage, transfers)

Pacific Holdings
Real Estate Investments
(800) 403-3407
8484 Wilshire Blvd #870
Beverly Hills, CA 90211
Direct: (800) 403-3407
Fax: (877) 607-7556